French manufacturing expands at slower pace in September, PMI shows

By Reuters News

Oct 1 (Reuters) - France's manufacturing sector expanded for a second straight month in September, although the pace of growth slowed as new orders fell, a business survey showed on Thursday.

• The S&P Global France Manufacturing Purchasing Managers' Index (PMI) fell to 50.6 points in September from 51.1 in August, said the S&P Global survey.

• Any figure above 50 points marks an expansion in activity, while below 50 shows a contraction.

• That final September manufacturing PMI was nevertheless stronger than the flash manufacturing PMI figure of 50.3 points.

• S&P Global said there had been an increase in factory production, although new orders had fallen for the fifth successive month.

• It added that inflationary pressures remained a concern.

• Data published this week showed that French consumer prices had risen by more than expected, with the headline inflation figure standing at 3.4%.

• "Against a backdrop of rising inflation, an intensification of the energy market crisis and a tightening of financial conditions, France's manufacturing sector managed to grow in September," said Joe Hayes, senior principal economist at S&P Global Market Intelligence.

• "It points to a striking degree of resilience, although falling new orders, inventory pullbacks and weak expectations raise questions about the durability of this expansion," he added.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.